World’s Hottest Market Korea Has Bulls Reaching for Prote…

Recent optimism in South Korean stocks is shifting towards caution as investors begin to hedge their positions amid fears of an overheated market. Hedge fund Golden Horse Fund Management has reduced its exposure and incorporated derivative protections, while M&G Investments has lightened its memory and foundry stocks to diversify its investments along the AI supply chain. Additionally, a Bloomberg Intelligence report indicates that investors are now seeking protective options against potential declines in the iShares MSCI South Korea ETF, which recently experienced a 14% drop in the US market.

Markets

FacebookXLinkedIn

EmailLink

Gift

FacebookXLinkedIn

EmailLink

GiftGift this article

Confidential tip?\ Send a tip to our reporters

Site feedback:\ Take our SurveyNew Window

FacebookXLinkedIn

EmailLink

Gift

By Abhishek Vishnoi and Winnie Hsu

June 7, 2026 at 12:00 AM UTC

BookmarkSave

A wave of optimism over South Korean stocks is giving way to growing caution, as some investors hedge positions and pare back crowded trades on concerns that the rally has run too hot, too fast.

Hedge fund Golden Horse Fund Management has trimmed exposure and added derivative protection, while M&G Investments has cut memory and foundry holdings to broaden out down the AI supply chain. A Bloomberg Intelligence analysis of options on the iShares MSCI South Korea ETF shows investors seeking protection against a decline. The fund tumbled 14% Friday in the US.

Read Original at Bloomberg.com →

World’s Hottest Market Korea Has Bulls Reaching for Protection